Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

Required:
(i) 
Select the term that appropriately fills gap 1 above; i.e. select A, B, C or D. 
‘There are some areas where we lack appropriate _2_. In particular we need 
segregation of duties when dealing with cash receipts.’ 
Required: 
(ii) 
Select the term that appropriately fills gap 2 above; i.e. select A, B, C or D. 
 
 
(1 mark each = 2 marks in total) 
(Total: 4 marks) 
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P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
100
KA P LA N 
P UB L IS HI N G 
26
 
(a)
 
Here are four short references to possible frauds faced by organisations: 
A 
Receipts from one debtor are taken by the fraudster, who then uses receipts 
from another debtor to clear this sales ledger balance 
B 
The fraudster diverts small amounts from a large number of transactions 
C 
A company is asked to pay a small amount up front in order to secure a larger 
later payment 
D 
A fake investment is created, where high investment returns are paid to early 
investors out of the investments made by subsequent investors 
Required: 
Identify the description above which is associated with each of the following 
frauds, by writing A, B, C or D. 
(i) Ponzi 
scheme 
(ii) Teeming 
and 
lading 
(iii) Skimming 
(iv) Advance 
fee 
fraud 
(0.5 
marks each, total = 2 marks) 
(b) 
One serious type of fraud is money laundering. This involves issues such as: 
A Layering 
B Tipping 
off 
C Placement 
D Integration 
The following sentences contain gaps relating to key money laundering terms. 
‘_1_ involves transferring money between businesses or locations in order to conceal 
their original source.’